New Pacific Reports Financial Results FOR
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NEWS RELEASE
NEW PACIFIC REPORTS FINANCIAL RESULTS FOR
THE THREE AND NINE MONTHS ENDED MARCH 31, 2023
VANCOUVER, BRITISH COLUMBIA – MAY 8 , 2023: New Pacific Metals Corp. (“New Pacific” or the “Company”)
reports its financial results for the three and nine months ended March 31, 2023. All figures are expressed in US
dollars unless otherwise stated.
FISCAL 2023 Q3 HIGHLIGHTS
The Company filed its independent preliminary economic assessment (the “PEA”) of the Silver Sand Project on
February 16, 2023. The PEA shows a post -tax net present value (“NPV”) (at a 5% discount rate) of $726 million
with an internal return rate (“IRR”) of 39%, underpinned by a total silv er production of 171 million ounces over
14 years of mine life. Please see “Cautionary Note Regarding Results of Preliminary Economic Assessment ”
The Company completed the 2022 drill program at the Carangas Silver Gold Project for a total of 50,368 meters
(“m”). To date, assay results of all 115 drill holes d rilled in 2022 have been received and released. The assay
results continue to indicate that a thick zone of gold mineralization occurs beneath a shallow silver horizon
measuring approximately 1,000 m long, 800 m wide, and up to 200 m thick. The 2022 dril l results also indicate
the gold system is open to the north and north- east directions with these targets being drill tested as part of
the Company’s 2023 drill program. Please see “Carangas Project”.
The Company completed the 2023 drill program at the C arangas Project for a total of 17,650 m in 39 drill holes
pending assay results. The results from the 2023 drill program, together with the results from 2021 and 2022
drill programs, will be used for an inaugural mineral resource estimate (“MRE”) to be co mpleted later in 2023.
Received results of an expanded 3D Bipole -Dipole IP-MT program completed in January 2023 at the Carangas
Project. The results show multiple chargeability anomalies outside the current area of drilling. These new
chargeability anomalies display a similar geophysical signature to those of the known silver-gold system and will
be drill tested in future drilling campaigns.
The Company strengthened the management team by appointing Mr. Andrew Williams as President of the
Company.
FINANCIAL RESULTS
Net loss attributable to equity holders of the Company for the three months ended March 31, 2023 was $2.28 million
or $0.01 per share (three months ended March 31, 2022 – net loss of $1.41 million or $0.01 per share). The Company’s
financial results were mainly impacted by the following: (i) operating expenses of $ 2.38 million compared to $1.52
million in the comparative quarter; (ii) net income from investments of $0.12 million compared to $0.12 million in the
comparative quarter; and (iii) foreign exchange loss of $0.02 million compared to $0.04 million in the comparative
quarter.
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For the nine months ended March 31, 2023, net loss attributable to equity holders of the Company was $6.23 million
or $0.04 per share compared to net loss of $4.08 million or $0.03 per share for the nine months ended March 31, 2022.
Operating expenses f or the three and nine months ended March 31, 2023 were $2.38 million and $6 .36 million,
respectively (three and nine months ended March 31, 2022 - $1.52 million and $4.49 million, respectively).
Net Income from investments for the three months ended March 31, 2023 was $0.12 million (three months ended
March 31, 2022 – $0.12 million) and is comprised of a $0.01 million loss on the Company’s equity investments (three
months ended March 31, 2022 – gain of $0.06 million), a $0.05 million gain on bonds (three months ended March 31,
2022 – gain of $0.03 million), and $0.08 million interest earned from cash accounts (three months ended March 31,
2022 - $0.03 million).
For the nine months ended March 31, 2023, income from investments was $0.16 million (nine months ended March
31, 2022 – $0.21 million).
Foreign exchange loss for the three months ended March 31, 2023 was $0.02 million (three months ended March
31, 2022 – $0.04 million). The Company holds a portion of cash and short -term investments in USD to support its
operations in Bolivia. Revaluation of these USD -denominated financial assets to their Canadian dollar (“CAD”)
functional currency equivalents resulted in unrealized foreign exchange gain or loss for the relevant reporting
periods. For the three months ended March 31, 2023, the USD depreciated by 0.1% against the CAD (from 1.3544
to 1.3533) while in the comparative period the USD depreciated by 1.4% against the CAD (from 1.2678 to 1.2496).
For the nine months ended March 31, 2023, foreign exchange loss was $0.03 million (nine months ended March 31,
2022– gain of $0.16 million).
Working Capital: As of March 31, 2023, the Company had working capital of $8.53 million.
PROJECT OVERVIEW
SILVER SAND PROJECT
In 2021, the Company completed a drill program of 13,313.7 m in 55 holes. The 2021 drill program comprised
structure orientation drilling, step-out and infill drilling as well as exploration drilling. Assay results of all drill holes
have been received. Detailed structural logging and assays of the oriented drill cores confirmed previous
understanding of the orientation of mineralized structures and resource model which are dominantly striking in the
direction of north and northwest and dipping in the direction of west at hi gh angles which are also evidenced at
surface outcrops and historical underground workings. Step-out drilling was carried out mainly outside of the major
mineralized trends with results indicating the existence of multiple smaller satellite mineralized zo nes between the
major mineralized trends. For details of the 2021 drill program, please refer to the Company’s news release dated
April 6, 2022.
In 2022, the Company conducted a resource infill drilling and step-out drilling program at the Silver Sand south block
and completed 19,323 m in 86 drill holes . Assay results for all drill holes have been received. The resource infill
drilling aimed to improve the confidence in the continuity of mineralization in the core area of the Silver Sand Project
and upgrade resources, while the step -out drilling was designed to test the extension of the mineralized zones up
and down dip as well as on strike. The infill and step- out drilling results were included in the MRE update and
incorporated into the PEA. For details on the 2022 drill program, please refer to the Company’s news releases dated
September 19, 2022, May 31, 2022, and April 6, 2022.
On February 16 , 2023, the Company filed its independent PEA technical report for its Silver Sand Project . AMC
Mining Consultants (Canada) Ltd. (mineral resource, mining, infrastructure and financial analysis) was contracted to
conduct the PEA in cooperation with Halyard Inc. (metallurgy and processing), and New Fields Canada Mining &
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Environment ULC (tailings , water and water management). The PEA is based on the MRE, which was reported on
November 28, 2022. Please see “Cautionary Note Regarding Results of Preliminary Economic Assessment”. For more
details on the PEA, please refer to the Company’s news release dated February 16, 2023 and January 9, 2023.
For the three and nine months ended March 31, 2023 , total expenditures of $1 .22 million and $ 5.42 million,
respectively (three and nine months ended March 31, 2022 - $1.02 million and $4.44 million, respectively) were
capitalized under the project.
CARANGAS PROJECT
In 2021, the Company completed an initial discovery drill program of 13,209 m in 35 drill holes . Assay results of all
drill holes have been received. Results from the 2021 discovery drill program confirmed the broad silver -rich
polymetallic mineralization near surface and intersected a wide zone of gold mineralization below it. For details of
the 2021 discovery drill program, please refer to the Company’s news releases dated May 17, 2022, February 23,
2022, and February 10, 2022.
Following the success of the 2021 discovery drill program, the Company completed the 2022 resource definition drill
program for a total of 50,368 m in 115 drill holes. Assay results of all 115 drill holes have been received and released
to date. The assay results continue to indicate that a thick zone of gold mineralization occurs beneath a shallow
silver horizon measuring approximately 1,000 m long, 800 m wide, and up to 200 m thick. The 2022 drill results also
indicate the gold system is open to the north and north- east directions with these targets being drill tested as part
of the Company’s 2023 drill program. Fo r details of the 2022 drill program, please refer to the Company’s news
releases dated April 6, 2023, February 21, 2023, February 1, 2023, January 24, 2023, October 19, 2022, August 8,
2022, and July 13, 2022.
To date, t he Company completed its 2023 drill program at the Carangas Project for a total of 17,6 50 m in 39 drill
holes pending assay results. The results from the 2023 drill program, together with the results from 2021 and 2022
drill programs, will be used for an inaugural MRE to be completed later in 2023.
For the three and nine months ended March 31, 2023 , total expenditures of $ 3.34 million and $ 9.19 million,
respectively (three and nine months ended March 31, 2022 - $1.16 million and $3.13 million, respectively) were
capitalized under the project.
SILVERSTRIKE PROJECT
In 2022, the Company commenced a 6,000 m initial discovery drill program at the Silverstrike Project. As of the date
of this news release, a total of 3,200 m in 10 drill holes have been completed, of which assay results of the two drill
holes have been received. The assay results intersected broad gold mineralization starting near surface. For details
of the initial discovery drill program, please refer to the Comp any’s news releases dated November 1, 2022 and
September 12, 2022.
For the three and nine months ended March 31, 2023 , total expenditures of $ 0.20 million and $1.35 million ,
respectively (three and nine months ended March 31, 2022 - $0.03 million and $0.04 million, respectively ) were
capitalized under the project.
MANAGEMENT DISCUSSION AND ANALYSIS
This news release should be read in conjunction with the Company’s m anagement discussion and analysis and the
unaudited condensed consolidated interim financial statements and notes thereto for the corresponding period,
which have been filed with the Canadian Securities Administrators and are available under the Company’s profile on
SEDAR at www.sedar.com,on EDGAR at www.sec.gov and on the Company’s website at www.newpacificmetals.com.
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QUALIFIED PERSON
The scientific and technical information contained in this news release has been reviewed and approved by Alex
Zhang, P. Geo., Vice President of Exploration, who is a Qualified Person for the purposes of NI 43-101. The Qualified
Person has verified the information disclosed herein using standard verification processes, including the sampling,
preparation, security and analytical procedures underlying such information, and is not aware of any significant risks
and uncertainties or any limitations on the verification process that could be expected to affect the reliability or
confidence in the information discussed herein.
ABOUT NEW PACIFIC
New Pacific is a Canadian exploration and development company with precious metal projects in Bolivia. The
Company’s flagship Project, the Silver Sand Silver Project, has released its inaugural PEA study in January 2023. The
PEA study shows a post -tax NPV (5% discount) of US$726 millions with an IRR of 39%, underpinned by total silver
production of 171 million ounces over 14 years of mine life. At the recently discovered Carangas Silver-Gold Project,
a resource drilling program of more than 81,000 meters has been completed to date . The third project, the
Silverstrike Silver-Gold Project, had a 6,000 m discovery drill program in June 2022.
For further information, please contact:
Andrew Williams, President
New Pacific Metals Corp. Phone: (604) 633-1368 Ext. 236
U.S. & Canada toll-free: 1 (877) 631-0593
E-mail: [email protected]
For additional information and to receive company news by e-mail, please register using New Pacific’s website at
www.newpacificmetals.com.
CAUTIONARY NOTE REGARDING RESULTS OF PRELIMINARY ECONOMIC ASSESSMENT
The PEA results of are preliminary in nature and are intended to provide an initial assessment of the Silver Sand
Project’s economic potential and development options. The PEA mine schedule and economic assessment includes
numerous assumptions and is based on both indicated and inferred mineral resources. Inferred resources are
considered too speculative geologically to have the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty that the project economic assessments described
herein will be achieved or that the PEA results will be realized. The estimate of mineral resources may be materially
affected by geology, environmental, permitting, legal, title, socio -political, marketing or other relevant issues.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. Additional exploration
will be required to potentially upgrade the classification of the inferred mineral resources to be considered in futur e
advanced studies. AMC Mining Consultants (Canada) Ltd. (mineral resource, mining, infrastructure and financial
analysis) was contracted to conduct the PEA in cooperation with Halyard Inc. (metallurgy and processing), and
NewFields Canada Mining & Environment ULC (tailings, water and waste management). The q ualified persons for
the PEA for the purposes of NI 43-101 are Mr. Wayne Rogers P.Eng and Mr. Mo Molavi P.Eng both Principal Mining
Engineers with AMC Mining Consultants (Canada) Ltd, Mr. Andy Holloway P.Eng, Process Director with Halyard Inc.,
and Mr. Leon Botham P.Eng., Principal Engineer with NewFields Canada Mining & Environment ULC. This is in addition
to Ms. Dinara Nussipakynova, P.Geo., Principal Geologist with AMC Consultants (Canada) Ltd. W ho estimated the
mineral resources. All qualified persons for the PEA have reviewed the disclosure of the PEA herein. The PEA is based
on the MRE, which was reported on November 28, 2022. The effective date of the MRE is October 31 2022. The cut-
off applied for reporting the pit -constrained mineral resources is 30 g/t silver. Assumptions made to derive a cut -off
grade included mining costs, processing costs and recoveries and were obtained from comparable industry situations.
The model is depleted for histo rical mining activities. Mineral r esources are constrained by optimized pit shells at a
silver price of US$22.50 per ounce, silver metallurgical recovery of 91%, silver payability of 99%, open pit mining cost
of US$2.6/t, processing cost of US$16/t, G&A cost of US$2/t, and slope angle of 44-47 degrees. Key assumptions used
for pit optimization for the PEA mining pit include silver price of US$22.50 per ounce, silver metallurgical recovery of
91%, silver payability of 99%, open pit mining cost of US$2.6/t, i ncremental mining cost of US$0.04/t (per 10 m
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bench), processing cost of US$16/t, tailing storage facility operating cost of US$0.7/t, G&A cost of US$2/t, royalty of
6.00%, mining recovery of 92%, dilution of 8%, and cut-off grade of 30 g/t silver.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements and information in this news release constitute “forward- looking statements” within the
meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward- looking information”
within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or
involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or
future events or performance (often, but not alway s, using words or phrases such as “expects”, “is expected”,
“anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”,
“forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions,
events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or
information. Such statements include, but are not limited to: statements regarding anticipated exploration, drilling,
development, construction, and other activities or achievements of the Company; inferred, indicated or measured
mineral resources or mineral reserves on the Company’s projects; the results of the PEA; timing of receipt of permits
and regulatory approvals; and estimates of the Company’s revenues and capital expenditures.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to differ from those reflected in the forward-looking statements
or information, including, without limitation, risks relating to: global economic and social impact of COVID -19;
fluctuating equity prices, bond prices, commodity prices; calculation of r esources, reserves and mineralization,
general economic conditions, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel;
conflicts of interest; dependence on management , uncertainties relating to the availability and costs of financing
needed in the future, environmental risks, operations and political conditions, the regulatory environment in Bolivia
and Canada, risks associated with community relations and corporate social responsibility, and other factors
described under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended June 30,
2022 and its other public filings.
This list is not exhaustive of the factors that may affect any of the Company’s forward- looking statements or
information.
The forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations
and opinions of management as of the date of this news release that, while considered reasonable by management,
are inherently subject to significant business, economic and competitive uncertainties and contingencies. These
estimates, assumptions, beliefs, expectations and options include, but are not limited to, those related to the
Company’s ability to carry on current and future op erations, including: the duration and effects of COVID -19 on our
operations and workforce; development and exploration activities; the timing, extent, duration and economic
viability of such operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments;
the Company’s ability to meet or achieve estimates, projections and forecasts; the stabilization of the political climate
in Bolivia; the Company’s ability to obtain and maintain social license at its mineral properti es; the availability and
cost of inputs; the price and market for outputs; foreign exchange rates; taxation levels; the timely receipt of
necessary approvals or permits , including the ratification and approval of the Mining Production Contract with the
Corporacion Minera de Bolivia (“COMIBOL ”) by the Plurinational Legislative Assembly of Bolivia; the ability of the
Company’s Bolivian partner to convert the exploration licenses at the Carangas Project to AMC; the ability to meet
current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current
and future social, economic and political conditi ons; and other assumptions and factors generally associated with
the mining industry.
Although the forward-looking statements contained in this news release are based upon what management believes
are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward -
looking statements. All forward- looking statements in this news release are qualified by these cautionary
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statements. Accordingly, readers should not place undue reliance on such statements. Other than specifically
required by applicable laws, the Company is under no obligation and expressly disclaims any such obligation to
update or alter the forward -looking statements whether as a result of new information, future events or otherwise
except as may be required by law. These forward-looking statements are made as of the date of this news release.
CAUTIONARY NOTE TO US INVESTORS
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada
which differ from the requirements of United States securities laws. All mining terms used herein but not otherwise
defined have the meanings set forth in NI 43-101. Unless otherwise indicated, the technical and scientific disclosure
herein has been prepared in accordance with NI 43 -101, which differs significantly from the requirements adopted
by the U.S. Securities and Exchange Commission.
Accordingly, information contained in this news release containing descriptions of the Company's mineral deposits
may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure
requirements of United States federal securities laws and the rules and regulations thereunder.
Additional information relating to the Company, including the Company’s Annual Information Form, can be obtained
under the Company’s profile on SEDAR at www.sedar.com, on EDGAR at www.sec.gov, and on the Company’s website
at www.newpacificmetals.com.